SEC to Reject Two Solana-ETF Applications, Reports Suggest

The SEC has informed at least two of the five issuers of spot Solana-ETFs that it intends to reject their 19b-4 forms, according to Fox Business journalist Eleanor Terrett.

?SCOOP: I’ve confirmed that the @SECGov has notified at least two of the five prospective issuers that it will reject their 19b4 filings for the $SOL spot ETFs.

The consensus here, I’m told, is that the SEC won’t entertain any new #crypto ETFs under the current administration.

— Eleanor Terrett (@EleanorTerrett) December 6, 2024

According to the journalist, the Commission does not plan to consider any new cryptocurrency ETFs until there is a change in its leadership.

Terrett emphasized that the rejection of two applications does not imply that the remaining three will be approved. She referred to the launch of 11 Bitcoin-ETFs in a single day.

Nate Geraci, President of ETFStore, also does not anticipate any progress on cryptocurrency exchange-traded funds under the current SEC administration.

No surprise, but won’t be any movement on spot crypto ETF filings until new leadership in place…

Lame duck. https://t.co/DG7KOGG5PA

— Nate Geraci (@NateGeraci) December 6, 2024

“No surprise, but there won’t be any movement on spot crypto ETF filings until new leadership is in place,” he noted.

Experts believe that the launch of an ETF based on Solana’s price will eventually occur, but not until 2025. This will be facilitated by a change in the SEC’s chair and shifts within the U.S. government.

Many in the community are hopeful for a more industry-friendly stance from Paul Atkins, the leading candidate for the SEC chair position. His colleagues have supported his nomination, praising his common sense and approach to innovation.

Former SEC attorney John Reed Stark noted that Gary Gensler has placed like-minded individuals in key positions, making it challenging to alter the entrenched aggressive policy.

Another encouraging factor for ETF issuers is the nomination of former PayPal COO David Sacks as the “czar” for AI and cryptocurrencies.

Astronaut Capital’s Chief Investment Officer Matthew Dibb described him as an “experienced” user of digital assets and a supporter of Solana. According to Cointelegraph, Sacks is an investor in the Solana-focused fund Multicoin Capital and believes this blockchain could surpass Ethereum.

On November 21, the CBOE published 19b-4 forms for four spot Solana-ETF applications from VanEck, 21Shares, Canary, and Bitwise. A fifth application from Grayscale for listing on the NYSE Arca was submitted on December 3.

Earlier, Bloomberg analyst Eric Balchunas suggested that the SEC might receive applications for launching a Dogecoin-ETF.